US Stocks Reach New Highs as Inflation Eases and Oil Prices Drop

The US stock market reached an all-time high on Thursday as inflation concerns eased and oil prices dropped. The S&P 500 climbed 0.7% to top its prior record set last week, while the Dow Jones Industrial Average added 69 points or 0.1%, and the Nasdaq composite gained 0.8%. A report showed that wholesale price inflation was 4.7% higher than a year earlier, down from June's 5.5% rate.

The easing of inflation concerns has traders betting on just a 35% chance that the Federal Reserve will raise interest rates at its next meeting in September, down from around 50% two days ago. An increase would be the first in more than three years and could anger President Donald Trump, who has been lobbying for lower interest rates.

The real-estate industry saw some of the market's bigger gains, with stocks such as AvalonBay Communities and D.R. Horton rising 2.3% and 2.8%, respectively. This is because lower mortgage rates can drive more activity in the housing market. Fossil Group also climbed 5.9% after reporting better-than-expected results for the latest quarter.